India’s tax authorities have updated reporting rules to bring crypto assets, central bank digital currencies (CBDCs), and specified electronic money products (SEMPs) under the Common Reporting Standard (CRS) and US FATCA frameworks.
The Central Board of Direct Taxes (CBDT) has issued Notification No. 19/2026 in the Official Gazette on 5 March 2026, amending the Income-tax Rules, 1962 (Rules 114F, 114G, 114H) to bring crypto assets, central bank digital currencies (CBDCs), and specified electronic money products (SEMPs) under the Common Reporting Standard (CRS) framework and US Foreign Account Tax Compliance Act (FATCA).
The amendments aim to align India’s domestic reporting requirements with international CRS and US FATCA standards, reinforcing transparency in emerging financial assets.
The notification:
- Expands “depository accounts” to cover those holding SEMPs or CBDCs.
- Broadens “depository institutions” to include entities managing SEMPs or CBDCs for customers.
- Includes additional reporting obligations for financial institutions, including self-certification by account holders, details of joint holders and controlling persons, and reporting of dividends, interest, and other income.
- Expands “excluded accounts” to include accounts linked to company foundations or capital increases, and SEMPs accounts (except US reportable accounts) up to USD 10,000.
- Recognises qualified non-profit entities as “non-reporting financial institutions.
- Separates accounts into pre-existing and new accounts based on defined criteria.
The amendments take effect from 1 January 2026.
Earlier, the 18th Global Forum plenary in New Delhi showcased growing global tax transparency, with more jurisdictions exchanging financial and crypto-asset information and improving compliance.
